UPDATE: Morgan Stanley Lowering Price Target On Google (GOOG)
Morgan Stanley is lowering its price target on shares of Google (NASDAQ: GOOG) to $645, but the New York-based investment bank is keeping its Overweight rating on shares. This follows Google’s Q1 earnings report, which was held last night after the bell.
In a note to clients, Morgan Stanley writes, “Although we believe Google Instant has delivered revenue upside, several challenges overshadow this strength. We think investors will now focus on management changes, near-term
margin declines, intermediate-term regulatory risks, and long-term competition – quite a wall for a stock to climb. The key CQ1 confirmation is that margin expectations have been reset to a new, lower level. We maintain our OW rating but lower our forecasts and cut our target price to $645, removing Google from our Best Ideas list.”
Shares of GOOG are off $37.96, a loss of nearly 7% today to trade at $540.55. This comes on more than 6.7 million shares.
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